Manufacturer Brands Drive Innovation In Spanish FMCG
Manufacturer brands in Spain are major innovators within FMCG, investing over €520 million annually in R&D and generating 65% of new business in the sector.
Despite this significant contribution, Promarca, the association representing leading manufacturer brands, highlights a troubling trend: the overall volume of innovation has declined by 48-50% since 2010, reaching historic lows.
This stagnation is preventing consumers from accessing a wider array of healthier, more sustainable products tailored to their specific needs, and it risks hindering the sector’s growth.
Engine Of Growth
Manufacturer brands contribute 7.5% to Spain’s GDP, generate over 1.37 million direct jobs, account for 65% of total employment in the FMCG sector, and contribute more than €13 billion annually in taxes.
Beyond economic impact, they foster equal opportunities, support young talent, and combat rural depopulation by locating 40% of their factories in municipalities with fewer than 20,000 inhabitants.
According to Promarca, innovation ensures consumer freedom of choice, as consumers increasingly seek products that are healthier, more sustainable, and simplify their daily lives.
Innovation also energises product categories and ensures sustained growth for the entire economy.
According to Worldpanel by Numerator’s Innovation Radar 2024, manufacturer brand innovation generated 65% of incremental business in 2024, also benefitting retailers, and contributing 44% of incremental growth for distributors.
The Innovation Radar 2024 also indicates a strong focus on health and wellness among recent launches, including non-alcoholic beverages, sugar-free ice creams, and functional foods.
Call For Dialogue
The significant reduction in innovation over the past decade presents a critical challenge for the sector.
To address this, Promarca proposes a forum for constructive and strategic dialogue, involving public administration bodies and manufacturers and distributors.
The goal is to identify best practices, overcome existing barriers, and collaboratively design solutions to foster a more favourable ecosystem for the creation, launch and distribution of new products.
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